Mantra ($OM) Has Imploded -90% in an Unprecedented MANTRA Crypto Crash

The price of OM, the native token of Mantra's real-world asset blockchain, plunged over 90 percent on Sunday.

The price of OM (CRYPTO: OM), the native token of real-world asset blockchain Mantra, plunged more than 90 percent on Sunday in one of the most dramatic collapses of the year.

Within 24 hours, OM dropped from $6.30 to below $0.50, wiping out over $5.5 billion in market capitalization and prompting widespread panic across trading desks and Telegram groups.

What Happened: At the core of the crash lies what the Mantra team calls a “massive forced liquidation” on a centralized exchange.

A large OM investor triggered cascading sell orders, tanking the order books and accelerating the price decline, according to Mantra co-founder John Patrick Mullin.

“This wasn’t team selling,” Mullin wrote on X, formerly Twitter. “We’re still here. Still building. Still fixing this.”

Mantra’s public Telegram group went offline shortly after the crash, fueling speculation of internal disarray. Community lead Dustin McDaniel attempted to quell fears in a message before the group was shuttered.

“I have no knowledge of what caused the recent price drop on OM. We are looking into it and will provide an update as soon as possible,” McDaniel said.

The scale and speed of the price collapse sparked comparisons to prior black swan events like Terra’s (CRYPTO: LUNA) LUNA implosion and the FTX fraud revelation.

Traders and analysts flagged long-standing concerns about OM’s tokenomics, particularly its steep, fully diluted valuation, which stood at nearly $9.5 billion compared to a total value locked (TVL) of just $13 million.

“It’s like a house of cards. One big liquidation could take down the whole thing,” one trader remarked.

On-chain data shows that in the days leading up to the crash, millions of OM tokens were sent to centralized exchanges OKX and Binance. One address linked to Binance reportedly transferred over $36 million in OM to OKX in a sequence of moves that some now view as strategic positioning ahead of the collapse.

Related: 9+ Best High-Risk, High–Reward Crypto to Buy in April 2025

Will $OM Crypto and Mantra DAO Survive The Project Implosion?

These events coincide with the Mantra DAO’s recent legal challenges. Six members were ordered by a Hong Kong court to disclose financial records in an ongoing lawsuit alleging misappropriation of DAO funds—raising further questions about internal governance and accountability.

Just two months ago, Mantra appeared to be performing well. The project secured a virtual asset license from Dubai’s VARA and announced a $1 billion tokenization deal with real estate giant DAMAC. Now, with investor confidence shattered and key infrastructure offline, the future of OM appears uncertain.

It remains to be seen whether the team can stabilize the project or whether this marks the beginning of another overly-leveraged fantasy.